MIRA
INFORM REPORT
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Report No. : |
333906 |
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Report Date : |
30.07.2015 |
IDENTIFICATION DETAILS
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Name : |
RICHINA LEATHER INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 768, |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.12.1995 |
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Com. Reg. No.: |
310000400136057 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling leather products. |
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No. of Employee : |
728 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, growth of the private sector, development of stock markets and a
modern banking system, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors considered important to
"economic security," explicitly looking to foster globally
competitive industries. After keeping its currency tightly linked to the US
dollar for years, in July 2005 China moved to an exchange rate system that
references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. In 2014 the People’s Bank of China (PBOC) doubled the
daily trading band within which the RMB is permitted to fluctuate. The
restructuring of the economy and resulting efficiency gains have contributed to
a more than tenfold increase in GDP since 1978. Measured on a purchasing power
parity (PPP) basis that adjusts for price differences, China in 2014 stood as
the largest economy in the world, surpassing the US that year... Still, per
capita income is below the world average.
The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (c) reducing corruption and other economic crimes; and (d)
containing environmental damage and social strife related to the economy's
rapid transformation. Economic development has progressed further in coastal
provinces than in the interior, and by 2014 more than 274 million migrant
workers and their dependents had relocated to urban areas to find work. One
consequence of population control policy is that China is now one of the most
rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development.
Several factors are converging to slow China's growth, including debt
overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient
allocation of capital by state-owned banks, and the slow recovery of China's
trading partners. The government's 12th Five-Year Plan, adopted in March 2011
and reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources. In 2014 China agreed to begin limiting
carbon dioxide emissions by 2030. China implemented several economic reforms in
2014, including passing legislation to allow local governments to issue bonds,
opening several state-owned enterprises to further private investment,
loosening the one-child policy, passing harsher pollution fines, and cutting
administrative red tape.
|
Source
: CIA |
company name and address
RICHINA LEATHER
INDUSTRIAL CO., LTD.
NO. 768, NANDA ROAD, BAOSHAN DISTRICT, SHANGHAI 200436 PR CHINA
TEL: 86 (0) 21-62503354
FAX: 86 (0) 21-62509052
EXECUTIVE SUMMARY
Date of Registration : decEMBER 29, 1995
REGISTRATION NO. : 310000400136057
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : yan Ciliang
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 21,794,441
staff : 728
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 676,576,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 64,859,000 (AS OF DEC. 31, 2014)
WEBSITE : www.srl-leather.com
E-MAIL : jacky@srl-leather.com
& amy.wang@srl-leather.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = USD 1
ADOPTED ABBREVIATIONS (AS FOLLOWS)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as shares limited company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 310000400136057.
SC’s Organization Code Certificate No.:
60734715-8
SC’s Tax No.: 310113607347158
SC’s registered capital: CNY 21,794,441
SC’s paid-in capital: CNY 21,794,441
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2005 |
Shareholder (s) (% of Shareholding) |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 85% Richina Pacific (China) Investment Limited 10% |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 5% Richina Pacific (China) Investment Limited 80% Shanghai Richina Consulting Co., Ltd. 5% Shanghai Richina Leather Research & Development Co., Ltd. 5% |
|
2006 |
Shareholder (s) (% of Shareholding) |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 5% Richina Pacific (China) Investment Limited 80% Shanghai Richina Consulting Co., Ltd. 5% Shanghai Richina Leather Research & Development Co., Ltd. 5% |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 85% Richina Pacific (China) Investment Limited 10% |
|
-- |
Company Name |
Shanghai Richina Leather Co., Ltd. |
Richina Leather Industrial Co., Ltd. |
|
Shareholder (s) (% of Shareholding) |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 85% Richina Pacific (China) Investment Limited 10% |
Richina Pacific (China) Investment Limited 95% Shanghai Leather Corporation Ltd. 5% |
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|
Legal Form |
Limited Liability Company |
Shares Limited Company |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Richina Pacific (China) Investment Limited |
95 |
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Shanghai Leather Corporation Ltd. |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Yan Ciliang |
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Director |
Liu Yuliang |
|
Gu Chao |
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|
Huang Dan |
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|
Huo Jianguo |
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Supervisor |
Xiao Junyan |
|
Chen Liqun |
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|
Xu Quanfang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Richina Pacific (China) Investment Limited 95
Shanghai Leather Corporation Ltd. 5
Richina Pacific (China) Investment Limited
-----------------------------------------------------------
Registration No.: 310000400520992
Chief Executive: RICHARD C.L.YAN
Registered Capital: USD 100,000,000
Shanghai Leather Corporation Ltd.
-----------------------------------------------
Registration No.: 310000400008492
Chief Executive: Yan Ciliang
Registered Capital: CNY 257,180,000
MANAGEMENT
Yan Ciliang, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Shanghai Leather Corporation Ltd., Richina Leather
Industrial (Fuxin) Co., Ltd. and Richina Leather Industrial (Xuzhou) Co., Ltd.
as legal representative
Director
-----------
Liu Yuliang
Gu Chao
Huang Dan
Huo Jianguo
Supervisor
--------------
Xiao Junyan
Chen Liqun
Xu Quanfang
***Note: The given
contact person Mr Jacky Wu & Ms Amy Wang are working in SC at present.
BUSINESS OPERATION
SC’s registered business scope includes manufacturing leather which the
materials are imported, leather products and related raw materials; selling its
products (with permit if needed).
SC is mainly engaged in manufacturing and selling leather products.
Brand: SRL
SC’s products mainly include: leather products.
SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers*
------------------------
Chaussures De Luca Montreal Inc.
Tannin Corporation
Twin City Hide Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 728
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
have 2 subsidiaries at present:
Richina Leather Industrial (Fuxin) Co., Ltd.
------------------------------------------
Date of Registration: August 10, 2009
Registration No.: 210900400011343
Chief Executive: Yan Ciliang
Registered Capital: USD 25,000,000
Richina Leather Industrial (Xuzhou) Co., Ltd.
------------------------------------------
Date of Registration: April 7, 2015
Registration No.: 320300400018471
Chief Executive: Yan Ciliang
Registered Capital: USD 200,000,000
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record: None in our database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Agricultural Bank of China Shanghai Baoshan Dachang Sub-branch
AC#: 033270-08015001921
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Current assets |
188,268 |
227,918 |
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Long term investment |
157,870 |
189,870 |
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Fixed assets |
74,021 |
66,563 |
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Intangible assets |
0 |
0 |
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Other assets |
0 |
8,453 |
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------------- |
------------- |
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Total assets |
420,159 |
492,804 |
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------------- |
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Current liabilities |
287,256 |
427,945 |
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Long term liabilities |
41,188 |
0 |
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------------- |
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Total liabilities |
328,444 |
427,945 |
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Equities |
91,715 |
64,859 |
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------------- |
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Revenue |
634,023 |
676,576 |
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Cost of sales |
574,590 |
651,719 |
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Profit before tax |
25,252 |
-21,728 |
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Less: profit tax |
0 |
0 |
|
Profits |
25,252 |
-21,728 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
0.66 |
0.53 |
|
*Liabilities to assets |
0.78 |
0.87 |
|
*Net profit margin (%) |
3.98 |
-3.21 |
|
*Return on total assets (%) |
6.01 |
-4.41 |
|
*Revenue/Total assets |
1.51 |
1.37 |
|
*Cost of sales / Revenue |
0.91 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in 2013 and fair in 2014.
SC’s return on total assets is fairly good in 2013 and fair in 2014.
SC’s cost of sales is fairly high in 2014, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
|
|
1 |
Rs.99.71 |
|
Euro |
1 |
Rs.70.63 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.